Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Note 9.

Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is allocated to the appropriate reporting unit when acquired, if applicable. Before 2009, the cash consideration for meeting certain operating targets, under the agreement terms, was added to goodwill when paid. Beginning in 2009, the estimated future value of the cash consideration is recognized as goodwill at the acquisition date. As of December 31, 2013, the total potential cash consideration remaining to be paid in connection with acquisitions that occurred before 2009 was $353 thousand, which is allocated to the Insurance Services reporting unit. The Company analyzed the carrying value of goodwill as of October 31, 2013, and determined that no impairment charge was necessary.

The following table presents the activity in goodwill, by reporting unit, in the periods indicated:


(Amounts in thousands)	Community Banking			Insurance Services			Total
Beginning balance, January 1, 2011	$	75,599		$	9,315		$	84,914
Acquisitions and dispositions, net		—			(1,299	)		(1,299	)
Cash consideration paid		—			680			680
Impairment Charges		—			(1,239	)		(1,239	)

Ending balance, December 31, 2011	$	75,599		$	7,457		$	83,056

Beginning balance, January 1, 2012	$	75,599		$	7,457		$	83,056
Acquisitions and dispositions, net		21,118			—			21,118
Cash consideration paid		—			692			692

Ending balance, December 31, 2012	$	96,717		$	8,149		$	104,866

Beginning balance, January 1, 2013	$	96,717		$	8,149		$	104,866
Acquisitions and dispositions, net		(176	)		324			148
Cash consideration paid		—			441			441

Ending balance, December 31, 2013	$	96,541		$	8,914		$	105,455

Other Intangible Assets

The Company’s intangible assets also include core deposit and other identifiable intangible assets. Core deposit intangible assets are amortized over their estimated useful lives that range from 7 to 10 years. As of December 31, 2013, the remaining lives of core deposit intangible assets ranged from 2 to 5 years, and the weighted average remaining life was 4 years. Other identifiable intangible assets consist primarily of the value assigned to contractual rights arising from insurance agency acquisitions. Other identifiable intangible assets are amortized using the straight-line method. The following table presents the components of other intangible assets, by reporting unit, as of the dates indicated:


	December 31,
	2013									2012
(Amounts in thousands)	Community Banking			Insurance Services			Total			Community Banking			Insurance Services			Total
Core deposit intangibles	$	7,940		$	—		$	7,940		$	7,940		$	—		$	7,940
Accumulated amortization		(6,669	)		—			(6,669	)		(6,244	)		—			(6,244	)

Core deposit intangibles, net		1,271			—			1,271			1,696			—			1,696
Other identifiable intangibles		535			3,711			4,246			535			3,638			4,173
Accumulated amortization		(410	)		(2,241	)		(2,651	)		(383	)		(1,964	)		(2,347	)

Other identifiable intangibles, net		125			1,470			1,595			152			1,674			1,826

Total other intangible assets, net	$	1,396		$	1,470		$	2,866		$	1,848		$	1,674		$	3,522

Amortization expense for other intangible assets was $729 thousand in 2013, $804 thousand in 2012, and $1.02 million in 2011. The following schedule presents the estimated amortization expense for intangible assets, by year, as of December 31, 2013:


(Amounts in thousands)
2014	$	712
2015		712
2016		607
2017		381
2018		292
2019 and thereafter		—

	$	2,704

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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